Question
Is the answer yes because fixtures have priority over real property interests? Problem 100 (Problem 99 is below) Assume Tuesday (last Problem) bought a trash
Is the answer yes because fixtures have priority over real property interests?
Problem 100 (Problem 99 is below)
Assume Tuesday (last Problem) bought a trash compactor on credit from Easy Credit Department Store and had her kitchen area remodeled to accommodate it. It was installed on May 5. Easy Credit comes to you on May 7.
Is
Will it prevail over Simon's landlord's lien?
oYES. Store has priority
Problem 99
After the building was complete, Tuesday Tenant moved in. Not liking the refrigerator Simon had installed, she had him remove it, and she bought another refrigerator on time from Easy Credit Department Store, which reserved a security interest therein but never filed a financing statement. Assume state real property laws permit Construction State Bank's after acquired property mortgage to reach fixtures installed by lessees. (If they do not, Easy Credit will always prevail. See 9-334(f)(2).)
Will Easy Credit be entitled to priority if it is forced to repossess?
oNO. A PMSI in a fixture has priority over a real estate mortgage if the holder of the PMSI makes a fixture filing before affixation or within 20 days thereafter. Dept. Store did not do that in this case.
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